BRASILIA Dec 23 The Brazilian government will
raise the minimum wage by 6.78 percent to 724 reais ($310) per
month in 2014, President Dilma Rousseff said on her Twitter feed
Rousseff said she signed the decree to increase the minimum
wage. The increase is less than the hikes of 9 percent in 2013
and 14 percent in 2012.
The minimum wage adjustments of recent years have been
heavily criticized by many economists who believe the hikes have
outpaced the levels of productivity and fueled inflation.
Higher minimum wages also add pressure to Brazil's fiscal
accounts since the government increases public pensions in
tandem with the wage increases.
The minimum wage is readjusted by a formula that sets the
final number using the prior-year inflation plus the level of
GDP growth from the last two years.